Labour Research May 2001

Law Matters

Temporary employees to get limited rights

A proposed new law would give temporary workers the right to be regarded as permanent if they have been working continuously for four years on a single fixed-term contract or on successive fixed-term contracts without a break.

The government is currently consulting on draft regulations and must introduce legislation by 10 July to comply with a European Union fixed-term work directive.

As proposed the law would also outlaw waivers in temporary contracts, which at present can be used to deny redundancy rights to temporary employees when their jobs end. Temporary employees would have the right to be informed of any suitable alternative vacancies and would be protected against victimisation for exercising their rights under the regulations.

The format of the draft regulations is similar to that adopted for the earlier part-time workers regulations. However, unlike those they only cover "employees", excluding those deemed to be "self-employed". The TUC, which has been working closely with the government in the pre-consultation process, believes that all non-permanent workers should be included.

The regulations guarantee a right not to be treated "less favourably" than comparable permanent employees, that is, those employed by the same employer and doing broadly similar work.

However, the right excludes the key areas of pay rates and membership of an occupational pension scheme, allowing employers to pay different rates to temporary employees.

Copies of the draft regulations can be downloaded from the Department of Trade and Industry website: www.dti.gov.uk/er/fixed.